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Global Country Study ReportOn
“Automobile Industry of Denmark and India”Business Opportunities for Gujarat / India
Submitted toInstitute Code: 814
Institute Name: Sitarambhai Naranji Patel Institute ofTechnology & Research Centre,Umrakh
Under the Guidance ofMs. Khushboo kayasth
(Asst. Professor)
In partial Fulfillment of the Requirement of the award of the
degree of Master of Business Administration (MBA)
offered by Gujarat Technological University
Ahmedabad
Prepared by:Students of
MBA (Semester - IV)Group No. 7
Month & Year:May 2014
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STUDENTS DECLARATION
We, following students, hereby declare that the Global/ Country Study Report
titled “AUTOMOBILE INDUSTRY OF DENMARK AND INDIA” is a result of our own
work and our indebtedness to other work publications, references, if any, have
been duly acknowledged. If we are found guilty of copying any other report or
published information and showing as our original work, or extending plagiarism
limit, we understand that we shall be liable and punishable by GTU, which may
include ‘Fail’ in examination, ‘Repeat study & re-submission of the report’ or any
other punishment that GTU may decide.
Enrollment No. Name Signature
128140592021 Panchal Hemant
128140592030 Patel Hiral
128140592042 Patel Urvesh
128140592045 Pathan Afroza
128140592048 Rao Jeenal
Place: Date :
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Acknowledgement
To acknowledge is very great way to show your appreciation towards the persons
who have contributed in your success in one or other way.
At the very beginning of preparing this report we believe it is our moral duty to
express our sincere thanks to our GCSR mentor MS. KHUSHBOO KAYASTH for her
continuous guidance and supervision and support during the report preparation
period.
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INSTITUTE CERTIFICATE
“Certified that this Global Country Study and Report Titled”
‘AUTOMOBILE INDUSTRY OF DENMARK AND INDIA’ Business Opportunities for
Gujarat / India is the bonafide work of attached student list with enrollment
numbers, who have carried out their research under my/our supervision. I/We
also certify further, that to the best of my knowledge the work reported herein
does not form part of any other project report or dissertation on the basis of
which a degree or award was conferred on an earlier occasion on this or any
other candidate. I/we have also checked the plagiarism extent of this report
which is ……… % and the separate plagiarism report in the form of html /pdf file is
enclosed with this.
Signature of the Faculty Guide/s
Ms.Khushboo Kayasth
(Asst. Professor)
Signature of Principal/Director
Dr.Jayesh Shah
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The automotive industry in India is one of the larger markets in the world.
The majority of India's car manufacturing industry is based around three clusters
in the south, west and north. The southern cluster consisting of Chennai is the
biggest with 35% of the revenue share.
The western hub near Mumbai and Pune contributes to 33% of the market and
the northern cluster around the National Capital Region contributes 32%.
Chennai, with the India operations of Ford, Hyundai, Renault, Mitsubishi,
Nissan, BMW, Hindustan Motors, Daimler, Caparo, and PSA Peugeot Citroën is
about to begin their operations by 2014.
Chennai accounts for 60% of the country's automotive exports.
Gurgaon and Manesar in Haryana form the northern cluster where the country's
largest car manufacturer, Maruti Suzuki, is based.
The first car run on India's roads in 1897. Until the 1930s, cars were imported
directly, but in very small numbers.
An developing automotive industry emerged in India in the 1940s. Hindustan was
launched in 1942, longtime competitor Premier in 1944. They
built GM and Fiat products respectively. Mahindra & Mahindra was established
by two brothers in 1945, and began assembly of Jeep CJ-3A utility vehicles.
Maruti Suzuki was the first, and the most successful of these new entries, and in
part the result of government policies to promote the automotive industry
beginning in the 1980s.
EXECUTIVE SUMMARY
PART-1
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By 2000, there were 12 large automotive companies in the Indian market, most
of them offshoots of global companies.
In tune with international standards to reduce vehicular pollution, the central
government unveiled the standards titled 'India 2000' in 2000 with later upgraded
guidelines as 'Bharat Stage'.
Market segment
1. Passenger Vehicles: Middleclass dreams fuel sales growth
2. Commercial Vehicles: Rapid economic growth boosts demand
3. Two-wheelers: Rural markets offer further growth opportunity
4. Automobile Components: Attractive source for global auto firms
5. Outlook: Export potential adds to domestic demand flourish
The Danish car market was one of the few in Western Europe that grew during
2012, albeit marginally, and it is expected to continue expanding moderately
during the forecast period as a whole.
Based in four locations: Hyderabad (India), Turin (Italy), Shanghai (China) and,
just launched in 2010, Detroit (United States), the Centers are connected virtually
so we can serve clients with the resources of our global network regardless of
their location.
Denmark has more wind power per capita than any other country in the world. Its
wind power capacity is 3,166 MW, supplying around 16% to 19% of the country's
electricity.
One issue with using wind energy in the power grid is that fluctuations in wind
strength lead to large, impulsive variations in power generation, while the
difficulty of storing electricity creates an inelastic moment-to-moment demand.
Currently, Denmark handles the variability of its wind power through connections
to the Swedish and Norwegian power grids, which are particularly elastic
because of the large number of hydro plants in both countries that can be turned
on an off easily.
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Indian automobile industries are providing service at a lower the cost with using
cheap labor and the Denmark provides the high product with a lowest cost.
Indian automobile industries are mainly focused on the customer’s requirements
while the Denmark automobile focused on the environment.
Indian people are mainly used or prefer the fuel cars while the Denmark people
use the electric cars high.
There is lack of the technology for the Indian automobile and the high technology
advancement for the Denmark industry.
The Major global players like Audi, BMW, and Hyundai etc have setup
their manufacturing units in India while the car manufacturers Volkswagen, BMW,
Toyota, General Motors, Ford, Mitsubishi and Fiat, made an agreement on April
19th, 2009 with the energy companies Eon, Vattenfall, EDF, Npower, Endesa
and Enel to use a 400V vehicles standardized plug to counter this barrier.
In Indian market with the development or evolution of alternate fuels, hybrid cars
have made entry into the market while in the Denmark market Natural climate
changes have attend governments around the world to focus on alternatives to
gasoline transportation.
In India Government has granted concessions, such as reduced interest rates for
export financing while in Denmark Government provide services included tax
reductions on personal income, release of pension savings and a pool of money
for house repairs, all of which should stimulate consumption positively.
Indian government auto policy aimed at promoting an integrated, phased and
conductive growth of the Indian automobile industry while Denmark government
promoting the automobile industry through provide them subsidies and tax
breaks for start up business and manufacturing of products.
Bilateral trade between India and Denmark has more than doubled from
US$530.9 million in 2003 to reach a level of US$1221.1 million in 2012. However
as compared to 2011, our exports to Denmark decreased by 23% from US$ 992
million in 2011 to US$ 767 million in 2012, while imports from Denmark also
decreased by 24% from US$597 million in 2011 to US$453.9 million in 2012.
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Major investment of the Indian automobile are the Hero Moto Corp plans to
establish 20 manufacturing and assembly facilities to expand its presence across
50 countries by 2020.
Nissan Motor India, the Indian unit of Japanese auto maker Nissan Motor Co Ltd,
has entered into an agreement with Ennore Port Ltd (EPL), to export at least
60,000 cars a year through the port for the next 10 years
TVS Motor Co plans to launch two new motorcycle models in the Kenyan market.
These motorcycles will be specific to the Kenyan markets in terms of usability,
reliability and durability. Moreover, the firm also plans to set up a two-wheeler
assembly line in Uganda and will also launch two motorcycle models in the
African nation
HMIL has invested US$ 2 billion in two state-of-the-art passenger car
manufacturing facilities in India. More so, India contributes 25 per cent of the
firm’s global sales
Mahindra & Mahindra (M&M) plans capital expenditure and investments worth Rs
10,000 crore (US$ 1.63 billion) over the next two years
Maruti Suzuki India Ltd (MSIL) is setting up an operational integrated research &
development (R&D) centre in Rohtak, Haryana. The test tracks at the new facility
would be longer and considerably enhanced in technical capabilities than the
ones at the Suzuki Motor Corp (SMC) facility in Japan
Tech Mahindra has signed an agreement with Volvo Car Corporation. The IT
company will provide Volvo with a service to maintain and develop a range of
applications that can increase efficiency and reduce costs
Isuzu Motors India plans to start contract manufacturing of its sports utility
vehicles (SUV) and pick-up trucks at Hindustan Motors' (HM) Chennai plant from
December 2013
Daimler India Commercial Vehicles (DICV) has expanded its network across the
country. The company plans to establish dealership facilities in over 100
identified locations across India by 2014.
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At present major Indian, European, Korean, Japanese automobile companies are
holding significant market shares. In commercial vehicle, Tata Motors dominates
over 60% of the Indian commercial vehicle market. Tata Motors is the largest
medium and heavy commercial vehicle manufacturer.
The Danish population has a “green” consciousness and as a result the
politicians have implemented strict rules on environment protection and
ambitious goals for reducing greenhouse gasses. But Danes are also price
conscious.
Denmark government promoting the automobile industry through provide them
subsidies and tax breaks for start up business and manufacturing of products.
Denmark is frequently ranked as the happiest country in the world in cross-
national studies of happiness. Denmark ranks as having the world's highest
mobility, a high level of equality, has one of the world's highest per capita
incomes, and has one of the world’s highest personal income tax rates.
Denmark is known for great use of bicycles, broad bike infrastructure, efficient
but expensive public transportation and expensive cars. The first car is seldom
bought with the driver’s first license, due to high opening- and high running costs.
The populations in rural districts and in small towns have become increasingly
dependent upon jobs and services in the large urban areas. At the same time the
population has been spreading out geographically.
The Danish Government will encourage that in future greater emphasis is placed
on decentralized efforts towards counteracting continued strong growth of the
transport work, while at the same time due consideration is taken of the need for
mobility and the Danish Government’s labour market policy.
The Danish Government i.e. intends to promote international research and
development on environmentally friendly vehicles, and make contributions to
ensure that sufficient knowledge and general overview of the area is maintained
in Denmark.
The Danish Government will consider whether in connection with the periodical
vehicle inspection there is a need for special systems of inspection of the
exhaust emissions and energy consumption of cars currently in use.
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The Danish Government pays constant attention to the development in this area
around the world, and Denmark will endeavor to ensure the necessary research
and development in the area is carried out at the international level.
The Indian automobile industry has a well established name globally being the
2nd largest two wheeler market in the world, 4th largest commercial vehicle market
in the world, and 11th largest passenger car market in the world and expected to
become the 3rd largest automobile market in the world only behind USA and
China.
The growth of the Indian middleclass along with the growth of the economy over
the last few years has resulted in a host of global auto giants setting their foot
inside the Indian Territory.
Moreover India also provides trained manpower at competitive costs making the
country a manufacturing hub for many foreign automobile companies. India
proves to be a potential market as compared to most of the other countries which
are witnessing stagnation as far as automobile industry growth is concerned.
India's Services exports to Denmark were valued at US$549 million in CY 2012,
a marginal increase of 2% as compared to US$537 recorded in CY 2011. India's
Services imports from Denmark were valued at US$1,038 million in 2012,
recording a marginal increase of 2.5% over the CY 2011 figure of US$1,012
million.
Major Danish Exports to India are medicinal/pharmaceutical goods, power
generating machinery, industrial machinery, metal waste and ore, organic
chemicals, etc.
Major Indian Exports to Denmark are apparels/ready-made garments,
textiles/fabrics/yarns/ carpets, road vehicles and components, metal goods, iron
and steel, footwear, travel goods including leather goods, industrial machinery
and accessories, chemical material and products, etc.
The existence of Indian companies in Denmark is rather small. Among IT
companies, Tata Consultancy Services (TCS) and L&T InfoTech have their
offices in Denmark since 1990 and 2000 respectively.
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Zenvo or Zenvo Automotive is a Danish sports car company located
in Præstø on the Danish island of Zealand.
It is managed by Jesper Jensen, who is also the founder of the Jensen car
maker, and founded and financed by Troels Vollertsen. The name 'Zenvo' is
derived from a combination of their names.
Zenvo Automotive was founded in 2004. The first prototype of what became
the Zenvo ST1 was completed in December 2008 and production began in
2009.
Only 15 cars were built: they were sold to approve customers. The car was sold
in the United States through the California based company Red Sea Distribution;
The cost of the U.S. based model was estimated at 1.8 million USD, which
included a free watch valued at $50,000.
Zenvo responded to Top Gear with a statement published on the Danish website
Pro Street.
Zenvo offers keyless entry, satellite navigation, power telescoping steering
wheel, and leather racing seats are electrically adjustable.
Tata entered the commercial vehicle sector in 1945 after forming a joint venture
with Daimler-Benz of Germany. After years of dominating the commercial vehicle
market in India, Tata Motors entered the passenger vehicle market in 1991 by
launching the Tata Sierra, a multi utility vehicle.
Tata subsequently launched the Tata Estate (1992; a station wagon design
based on the earlier 'TataMobile' (1989), a light commercial vehicle), the Tata
Sumo (1994; LCV) and the Tata Safari (1998; India's first sports utility vehicle).
Tata Motors also successfully exported large quantities of the car to South Africa.
The success of Indica played a key role in the growth of Tata Motors.
Tata Motors continued its market area expansion through the introduction of new
products such as buses (Starbus & Globus, jointly developed with subsidiary
PART-2
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Hispano Carrocera) and trucks (Novus, jointly developed with subsidiary Tata
Daewoo).
Tata Motors has vehicle assembly operations in India, the United Kingdom,
South Korea, Thailand, Spain and South Africa. It plans to establish plants
in Turkey, Indonesia and Eastern Europe.
Tata Motors' principal subsidiaries include Jaguar Land Rover, Tata Daewoo and
Tata Hispano.
Tata Motors is among the top four passenger vehicle brands in India with
products in the compact, midsize car and utility vehicle segments. The
company’s manufacturing base in India is spread across Jamshedpur
(Jharkhand), Pune (Maharashtra), Lucknow (Uttar Pradesh), Pantnagar
(Uttarakhand), Dharwad (Karnataka) and Sanand (Gujarat).
Tata also has franchisee/joint venture assembly operations in Kenya,
Bangladesh, Ukraine, Russia and Senegal.
Tata has dealerships in 26 countries across 4 continents. Though Tata is present
in many countries it has only managed to create a large consumer base in
the Indian Subcontinent, namely India, Bangladesh, Bhutan, Sri Lanka
and Nepal.
Tata is also present in Italy, Spain, Poland, Romania, Turkey, Chile, and South
Africa.
The principal reasons behind the acquisition were to reduce Tata's dependence
on the Indian commercial vehicle market (which was responsible for around 94%
of its sales in the MHCV segment and around 84% in the light commercial
vehicle segment) and expand its product portfolio by leveraging on Daewoo's
strengths in the heavy-tonnage sector
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COMPARISON OF SWOT FOR TATA AND ZENVO AUTOMOBILE
SWOT ZENVO AUTOMOBILE TATA AUTOMOBILE
STRENGH
Oldest car manufacturer
Offers a wide range of cars
Provides exclusive product
features
Has over 160,000
employees
Has excellent visibility &
marketing
Having a experienced
quality
User oriented
Having a high level
technology
Most established company
in automobile sector
Good market penetration
Expert professionals
Has More than 60,000
employees
Highly diversified product
Increase in the export
levels
Has Low cost and cheap
labor
Increasing demand for
European quality
Expert skills in producing
cars
WEAKNESS
Affected by the global
recession
Hasn’t completely tapped
emerging economies
Has long development
time
has a somewhat out of
date image
Peoples are more prefer
electrical cars OR bicycle.
Low quality
Limited international
presence
faces so-called quality and
durability issues
Low labour productivity
High Production cost
Low investment in R&D
area
OPPORTUNITY Expanding automobile
sector
Expanding automobile
market
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Improving business
scenario
Capitalizing on the models
exclusively designed for
different markets
Sustainability and
environmental vehicles
Technology advancement
Benefits provide by
governments
Increasing per capita
income
Leveraging customer
engagement experience to
acquire new customers
Leveraging mergers and
acquisitions to acquire
newer technology
Growing population in the
country
Rising living standards
Better car technology is
demanded
Rising rural demand
The car is a status symbol
THREATS
Competition from major
international players
Increasing usage of public
transport
increased fuel costs
Production problems in
local plants due to labor
and similar issues
Too much government
interference
Increasing fuel costs
High level Competition
Competitors provide same
product with low cost
Competitors having expert
engineers
Less skilled labor
Lack of technologies
Increase in the import tariff
and technology cost
Increased overcrowding in
the urban areas
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Automakers typically specialize in engine and transmission systems, while
outsourcing other components. However, the more electric-dependent a vehicle
is, the more value the battery holds.
These systems constrain the overall performance of the car, so automakers may
move into this space to increase efficiency and capture this value Opportunities
for Battery Makers.
The global market for electric vehicle batteries in 2009 was $1.3 billion. McKinsey
& Company projects that if annual sales of PEVs reach 6-8 million by 2020, the
value of the battery market will be $60 billion.
The price of batteries will also fall as technology becomes more standardized.
Once this happens, battery makers may want to expand into other systems of the
electric vehicle to gain more profit opportunities. For example, McKinsey &
Company foresees that battery companies may also be able to manufacture
components for power and thermal management systems.
The opportunities for suppliers depend upon which companies they are
supplying. Incumbent automakers negotiate down their costs along supply chains
in order to provide the best end-value for the customer. Thus, suppliers who work
with startup OEMs and battery companies may be able to earn better profit
margins.
If cars charge mostly at night, little or no new capacity will be needed. However, if
new generation capacity is needed, a question arises as to who will pay for the
necessary upgrades.
In vehicle to grid (V2G) applications, cars feed their electricity back into the grid
to supplement electricity supply during peak demand hours. In this case, bi-
directional chargers and appropriate software will be needed to control the
charge flow.
Establish an international hub for manufacturing affordable cars, two wheelers
and tractors Guarantee a stable progress towards open trade, with minimum risk
to local market and Indian economy to make it possible for constant
transformation of Tata by enabling innovative designs, research and
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development support the development of automobiles driven by alternative
energy source improving the local safety and environmental values.
The tata automobile of india having a opportunities like,
Growing demand
Policy support
Innovative opportunity
Providing road ahead
The policies of the India to import and export with Denmark country are:
It has empowered the Central Government to make provisions for development
and regulation of foreign trade by facilitating imports into, and augmenting
exports from India and for all matters connected therewith or incidental thereto.
The Central Government can prohibit, restrict and regulate exports and imports,
in all or specified cases as well as subject them to exemptions.
It authorizes the Central Government to formulate and announce an Export and
Import (EXIM) Policy and also amend the same from time to time, by notification
in the Official Gazette.
It provides for the appointment of a Director General of Foreign Trade by the
Central Government for the purpose of the Act. He shall advise Central
Government in formulating export and import policy and implementing the policy.
Under the Act, every importer and exporter must obtain a 'Importer Exporter
Code Number' (IEC) from Director General of Foreign Trade or from the officer
so authorized.
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SR. NO. PARTICULARS PAGE NO.
1. Overview of Zenvo Automobile industry in
Denmark
1
2. Overview of Tata Automobile industry in
India
9
3. SWOT analysis of Zenvo Automobile
industry
21
4. SWOT analysis of Tata Automobile industry 23
5. Market opportunity for zenvo automobile
industry
26
6. Market Opportunity for Tata Automobile
industry
31
7. Policies and norms of india for import or export to the denmark
33
8. Business plan 35
9. Findings and suggestions 45
10. conclusion 47
11. Bibliography 48
INDEX
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]]]]]]]]
ZENVO ST-1
OVERVIEW
MANUFACTURER Zenvo
ALSO CALLED Zenvo Automotive ST-1
PRODUCTION 2009
ASSEMBLY Zealand, Denmark
DESIGNER Christian Henriksen and Jesper Hermann
INTRODUCTION OF ZENVO AUTOMOBILE INDUSTRY
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BODY AND CHASSIS
CLASS Sports car
BODY STYLE 2-door coupé
LAYOUT MR
POWERTRAIN
ENGINE Turbocharged and Supercharged 7.0L V8
TRANSMISSION 6-speed manual
DIMENSIONS
WHEELBASE 3,055 mm (120.3 in)
LENGTH 4,665 mm (183.7 in)
WIDTH 2,041 mm (80.4 in)
HEIGHT 1,198 mm (47.2 in)
CURB WEIGHT 1,376 kg (3,034 lb)
Zenvo or Zenvo Automotive is a Danish sports car company located in Præstø on the
Danish island of Zealand. It is managed by Jesper Jensen, who is also the founder of the
Jensen car maker, and founded and financed by Troels Vollertsen. The name 'Zenvo' is
derived from a combination of their names.
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Zenvo Automotive was founded in 2004. The first prototype of what became the Zenvo
ST1 was completed in December 2008 and production began in 2009. Only 15 cars were
built: they were sold to approve customers. The car was sold in the United States
through the California based company Red Sea Distribution; the cost of the U.S. based
model was estimated at 1.8 million USD, which included a free watch valued at $50,000.
The Zenvo ST1 was significantly panned by the British motoring program Top Gear after
a series of unfortunate accidents during filming of a segment for the show, including the
car catching fire after a cooling unit failure.
Another car from the company eventually finished a complete timed lap of the Top Gear
Test Track, which was very wet at the time due to the severe weather that plagued
England at the time, the resulting time was inferior than the time a BMW M5 costing
nearly a tenth of the price had reached. Zenvo responded to Top Gear with a statement
published on the Danish website Pro Street.
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About Zenvo
2007
The beginning
A small team of car industry professionals joins forces to realize a mutual dream – the
creation of a unique hyper car. The team lays out a number of objectives for the project:
the car has to be day-to-day drivable, and design and technology should be equally
important in its development. Power should exceed 1100 bhp and speeding up from 0-
100 km/h should be under 3 seconds.
2008
The prototype
The model is ready for its first road test. Developed in house, the 6.8 litre V8 engine
features a unique twin charger system combining super charger and turbo charger.
Thus, the model name: ST1. This engine produces continuous torque and an output of
1000 bhp. During test drives the ST1 accelerates from 0 to 100 km/h in 3.2 seconds.
2009
The unveiling
Unveiled at the 2009 24-hour Le Mans ‘Drivers parade’, the model is nominated for
‘Super car of the year’. Its introduction causes a great stir in the super car industry. In
record time, an unknown Danish car manufacturer has achieved what others have spent
a decade creating: a hyper car with cutting-edge styling and staggering performance
capable of flooring the competition.
2011
The production
After two years of testing and development, Zenvo launches the first series production
ST1. Production pushes the car industry’s methods and technology to the very limit to
achieve quality and accuracy of the highest order.
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2012
The first
The first car is ready and delivered to the client. The production engine is capable ofproducing 1104 bhp at 6900 rpm and 1430 Nm of torque at 4500 rpm. speeding up from 0-100 km/h is now 3 seconds. All the original specification targets have been hit.
zenvo or Zenvo Automotive is a Danish sports car company located in Praesto on the
Danish island of Zealand. It is managed by Jesper Jensen, the founder and financier, and
Troels Vollertsen. The name 'Zenvo' is derived from a combination of their names.
Zenvo "ST1" designed to express the excessive power and performance of the car to the
maximum generating power 1104 hp (810 kW) in 6900 rpm with a maximum speed of
375 km / h through the electronically controlled.
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Zenvo Automotive was founded in 2004. The model was completed in December 2008
and after the final stages of testing, production started in 2009 Stipulation approved car
Zenvo customer ST1.
The Zenvo ST-1 is now being sold in the U.S with a limited production of only 3 cars per
year. Distribution is being handled by the California-based company by the name of Red
Sea Distribution. Cost of the United States-based model is estimated at 1.8 million USD,
which includes free watch valued at $ 50,000.
The Zenvo is a high performance sports car Sementara power available through the
supercharger and turbo, still be drive able for everyday use. 7-liter V8 engine will be
used to produce 1,250 hp (932 kW) at 1,104 hp and reaches (823 kW) at 6,900 rpm and
1,430 N · m (£ 1,050 · ft) of torque at 4500 rpm. In fact, according to The Motor Report,
recent tests returned 0-100 km / h in 3.0 seconds, while 0-200 km / h takes just 8.9
seconds, and top speed of 375 km / h (233 mph)
Even though the strength and velgnya great, this car is small, only 15.3 ft (4.7 m) in
length, 6.7 ft (2.0 m) wide, and 3.9 feet (1.2 m) in height. Weighing more than 3020
pounds (1,370 kg) thanks to carbon fiber body panels.
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Zenvo offers keyless entry, satellite navigation, power telescoping steering wheel, and
leather racing seats are electrically adjustable.
According to Jesper Jensen and Troels Vollertsen, the two-man team behind the ST1,
has decided to keep the Zenvo series to just 15 cars to remain an exclusive car.
The Zenvo entirely a result of Danish design. Carbon fiber body is made in Germany and
many components such as gauges, gas tank, ABS brakes, traction control and airbags are
from the U.S. or German car hostile line of the car was designed by Christian Brandt and
Jesper Hermann who has a design consultant Hartvig Hermann Brandt. Brandt, who
headed the design on the project, has also worked for Alfa Romeo and Kleemann, a
tuning company for Mercedes-Benz auto adjust located in Farum, Denmark.
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It is expected that the cost basis of the car, without registration or tax, will be
approximately five million Danish kroner, which is approximately $ 850,000 U.S. dollars.
Cost of putting a car on the road in Denmark will be about 16 million kroner as a result
of the registration fee, but Zenvo aiming for export markets only.
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TATA MOTORS LIMITED
TYPE Public
TRADED AS BSE: 500570 (BSE SENSEX Constituent)NSE: TATAMOTORSNYSE: TTM
INDUSTRY Automotive
FOUNDED 1945
FOUNDER(S) J. R. D. Tata
HEADQUARTERS Mumbai, Maharashtra, India
AREA SERVED Worldwide
INTRODUCTION OF TATA AUTOMOBILE INDUSTRY
KEY PEOPLE
PRODUCTS
SERVICES
REVENUE
OPERATING INCOME
PROFIT
TOTAL ASSETS
TOTAL EQUITY
EMPLOYEES
PARENT
DIVISIONS
Ratan Tata (Chairman Emeritus) Cyrus Pallonji Mistry(Chairman)Karl Slym (died 26 January 2014, Managing Director) Ravi Kant (Vice Chairman)
AutomobilesCommercial vehiclesCoachesBusesConstruction equipmentMilitary vehiclesAutomotive parts
Automotive design, engineering and outsourcing servicesVehicle leasingVehicle service
US$ 34.7 billion (FY 2012-13)
OPERATING INCOME US$ 3.06 billion (2012)
US$ 2.28 billion (2012)
US$ 28.05 billion (2012)
US$ 6.44 billion (2012)
59,759 (2012)
Tata Group
Tata Motors Cars
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SUBSIDIARIES Jaguar Land RoverTata DaewooTata Hispano
WEBSITE www.tatamotors.com
Tata entered the commercial vehicle sector in 1945 after forming a joint venture
with Daimler-Benz of Germany. After years of dominating the commercial vehicle
market in India, Tata Motors entered the passenger vehicle market in 1991 by launching
the Tata Sierra, a multi utility vehicle. Tata afterward launched the Tata Estate (1992;
a station wagon design based on the earlier 'TataMobile' (1989), a light commercial
vehicle), the Tata Sumo (1994; LCV) and the Tata Safari (1998; India's first sports utility
vehicle).
Tata indica
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Tata nano
Tata launched the Indica in 1998, the first fully indigenous Indian passenger car. Even
though initially criticized by auto-analysts, its excellent fuel economy, powerful engine
and an aggressive marketing strategy made it one of the best selling cars in the history
of the Indian automobile industry. A newer version of the car, named Indica V2, was a
major improvement over the previous version and quickly became a mass-favourite.
Tata Motors also successfully exported large quantities of the car to South Africa. The
success of Indica played a key role in the growth of Tata Motors.
In 2004 Tata Motors acquired Daewoo's South Korea-based truck manufacturing unit,
Daewoo Commercial Vehicles Company, afterward renamed Tata Daewoo.
On 27 September 2004, Tata Motors rang the opening bell at the New York Stock
Exchange (NYSE) to mark the listing of Tata Motors.
In 2005, Tata Motors acquired a 21% controlling stake in the Spanish bus and coach
manufacturer Hispano Carrocera. Tata Motors continued its market area expansion
through the introduction of new products such as buses (Starbus & Globus, jointly
developed with subsidiary Hispano Carrocera) and trucks (Novus, jointly developed with
subsidiary Tata Daewoo).
In 2006, Tata formed a joint venture with the Brazil
Bus, to manufacture fully built buses and coaches.
In 2008, Tata Motors acquired the British car maker
the Jaguar, Land Rover and Daimler luxury car brands, from Ford Motor Company.
In May 2009 Tata unveiled the Tata World Truck range jointly d
Daewoo; the range went in sale in South Korea, South Africa, the
the Middle-East at the end of 2009.
Tata acquired full ownership of Hispano Carrocera in
In 2010, Tata Motors acquired an 80% stake in the Italian design and engineering
company Trilix for €1.85 million. The acquisition formed part of the company's plan to
enhance its styling and design capabilities.
In 2012, Tata Motors announced it wou
Futuristic Infantry Combat Vehicles in collaboration with
In 2013, Tata Motors announced it will sell in India, the first vehicle in the world
on solid air (engines designed by the French company MDI) and dubbed "Mini CAT".
On 26 January 2014, the
22nd floor to the 4th floor of the
meeting of Tata Motors Thailand.
Tata Motors has vehicle assembly operations in India, the United Kingdom, South Korea, Thailand, Spain and South Africa. It plans to establish plantsEastern Europe.
Tata Motors' principal subsidiaries include Jaguar Land Rover, Tata Daewoo and Tata Hispano.
In 2006, Tata formed a joint venture with the Brazil-based Marcopolo,
, to manufacture fully built buses and coaches.
In 2008, Tata Motors acquired the British car maker Jaguar Land Rover, manufacturer of
the Jaguar, Land Rover and Daimler luxury car brands, from Ford Motor Company.
In May 2009 Tata unveiled the Tata World Truck range jointly developed with Tata
the range went in sale in South Korea, South Africa, the SAARC
East at the end of 2009.
Tata acquired full ownership of Hispano Carrocera in 2009.
In 2010, Tata Motors acquired an 80% stake in the Italian design and engineering
€1.85 million. The acquisition formed part of the company's plan to
enhance its styling and design capabilities.
In 2012, Tata Motors announced it would invest around 6 billion in the development of
Futuristic Infantry Combat Vehicles in collaboration with DRDO.
In 2013, Tata Motors announced it will sell in India, the first vehicle in the world
on solid air (engines designed by the French company MDI) and dubbed "Mini CAT".
On 26 January 2014, the Managing Director Karl Slym was found dead. He fell from the
the 4th floor of the Shangri-La Hotel in Bangkok where he was to attend a
meeting of Tata Motors Thailand.
Tata Motors has vehicle assembly operations in India, the United Kingdom, South Korea, Thailand, Spain and South Africa. It plans to establish plants in Turkey
Tata Motors' principal subsidiaries include Jaguar Land Rover, Tata Daewoo and Tata
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, Tata Marcopolo
, manufacturer of
the Jaguar, Land Rover and Daimler luxury car brands, from Ford Motor Company.
eveloped with Tata
SAARC countries and
In 2010, Tata Motors acquired an 80% stake in the Italian design and engineering
€1.85 million. The acquisition formed part of the company's plan to
6 billion in the development of
In 2013, Tata Motors announced it will sell in India, the first vehicle in the world to run
on solid air (engines designed by the French company MDI) and dubbed "Mini CAT".
was found dead. He fell from the
in Bangkok where he was to attend a
Tata Motors has vehicle assembly operations in India, the United Kingdom, South Korea, Turkey, Indonesia and
Tata Motors' principal subsidiaries include Jaguar Land Rover, Tata Daewoo and Tata
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TATA MOTORS CARS
Tata Motors Cars is a division of Tata Motors which produces passenger cars under the
Tata Motors marque. Tata Motors is among the top four passenger vehicle brands in
India with products in the compact, midsize car and utility vehicle segments. The
company’s manufacturing base in India is spread across Jamshedpur (Jharkhand), Pune
(Maharashtra), Lucknow (Uttar Pradesh), Pantnagar (Uttarakhand), Dharwad
(Karnataka) and Sanand (Gujarat). Tata's dealership, sales, service and spare parts
network comprises over 3,500 touch points. Tata Motors has more than 250 dealerships
in more than 195 cities across 27 states and 4 Union Territories of India. It has the third
largest sales and service network after Maruti Suzuki and Hyundai.
Tata also has franchisee/joint venture assembly operations in Kenya, Bangladesh,
Ukraine, Russia and Senegal. Tata has dealerships in 26 countries across 4
continents. However Tata is present in many countries it has only managed to create a
large consumer base in the Indian Subcontinent, namely India, Bangladesh, Bhutan, Sri
Lanka and Nepal. Tata is also present in Italy, Spain, Poland, Romania, Turkey, Chile,
and South Africa.
TATA DAEWOO
Tata Daewoo (officially Tata Daewoo Commercial Vehicle Company and formerly
Daewoo Commercial Vehicle Company) is a commercial vehicle manufacturer
headquartered in Gunsan, Jeollabuk
Tata Motors. It is the second
Korea and was acquired by Tata Motors in 2004.
The principal reasons behind the acquisition were to reduce Tata's dependence on the
Indian commercial vehicle market (which was responsible for ar
the MHCV segment and around 84% in the light commercial vehicle segment) and
expand its product portfolio by leveraging on Daewoo's strengths in the heavy
sector.
Tata Motors has jointly worked with Tata Daewoo to develop t
World Truck and buses including GloBus and StarBus. In 2012, Tata began developing a
new line to manufacture competitive and fuel efficient commercial vehicles to face the
competition posed by the entry of international brands like
Navistar into the Indian market.
Tata Daewoo (officially Tata Daewoo Commercial Vehicle Company and formerly
Daewoo Commercial Vehicle Company) is a commercial vehicle manufacturer
headquartered in Gunsan, Jeollabuk-do, South Korea and a wholly owned subsidiary of
econd-largest heavy commercial vehicle manufacturer in South
Korea and was acquired by Tata Motors in 2004.
The principal reasons behind the acquisition were to reduce Tata's dependence on the
Indian commercial vehicle market (which was responsible for around 94% of its sales in
the MHCV segment and around 84% in the light commercial vehicle segment) and
expand its product portfolio by leveraging on Daewoo's strengths in the heavy
Tata Motors has jointly worked with Tata Daewoo to develop trucks such as Novus and
World Truck and buses including GloBus and StarBus. In 2012, Tata began developing a
new line to manufacture competitive and fuel efficient commercial vehicles to face the
competition posed by the entry of international brands like Mercedes-
Navistar into the Indian market.
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Tata Daewoo (officially Tata Daewoo Commercial Vehicle Company and formerly
Daewoo Commercial Vehicle Company) is a commercial vehicle manufacturer
do, South Korea and a wholly owned subsidiary of
largest heavy commercial vehicle manufacturer in South
The principal reasons behind the acquisition were to reduce Tata's dependence on the
ound 94% of its sales in
the MHCV segment and around 84% in the light commercial vehicle segment) and
expand its product portfolio by leveraging on Daewoo's strengths in the heavy-tonnage
rucks such as Novus and
World Truck and buses including GloBus and StarBus. In 2012, Tata began developing a
new line to manufacture competitive and fuel efficient commercial vehicles to face the
-Benz, Volvo and
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TATA HISPANO
Tata Hispano Motors Carrocera, S.A. is a bus and coach cabin manufacturer based in
Zaragoza, Aragon, Spain and a wholly owned subsidiary of Tata Motors. Tata Hispano
has plants in Zaragoza, Spain and Casablanca, Morocco. Tata Motors first acquired a
21% stake in Hispano Carrocera SA in 2005, and purchased the remaining 79% for an
undisclosed sum in 2009, making it a fully owned subsidiary, subsequently renamed
Tata Hispano.
JAGUAR LAND ROVER
Jaguar Land Rover PLC is a British premium automaker headquartered in Whitley,
Coventry, United Kingdom and has been a wholly owned subsidiary of Tata Motors since
June 2008, when it was acquired from Ford Motor Company. Its principal activity is the
development, manufacture and sale of Jaguar luxury and sports cars and Land
Rover premium four wheel drive vehicles. It also owns the currently
dormant Daimler, Lanchester and Rover brands.
Jaguar Land Rover has two design centres and three assembly plants in the UK. Under
Tata ownership, Jaguar Land Rover has launched new vehicles including the Range
Rover Evoque, Jaguar F-Type, the Jaguar XF, the latest Jaguar XJ the Second-generation
Range Rover Sport, the Fourth-generation Land Rover Discovery and the fourth-
generation Range Rover.
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COMMERCIAL VEHICLES
The Tata TL
A Tata 407 water truck
A Tata Starbus
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Tata Motors trucks in Rajasthan, India
TATA Semi-Forward Cab 1210SE Truck
Tata twin Axle Lorry in South India
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MILITARY VEHICLES
Tata LSV (Light Specialist Vehicle)
Tata Mine Protected Vehicle (4×4)
Tata 2 Stretcher Ambulance
Tata 407 Troop Carrier, available in hard top, soft top, 4×4, and 4×2 versions
Tata LPTA 713 TC (4×4)
Tata LPT 709 E
Tata SD 1015 TC (4×4)
Tata LPTA 1615 TC (4×4)
Tata LPTA 1621 TC (6×6)
Tata LPTA 1615 TC (4×2)
Tata Winger Passenger Mini Bus
Tata Landrover 1515 F
TATA SUMO 4*4
TATA xenon
ELECTRIC VEHICLES
Tata Motors has unveiled electric versions of the Tata Indica passenger car and the Tata
Ace commercial vehicle, both of which run on lithium batteries. The company has
indicated that the electric Indica would be launched locally in India in about 2010,
without disclosing the price. The vehicle would be launched in Norway in 2009.
Tata Motors' UK subsidiary, Tata Motors European Technical Centre, has bought a 50.3%
holding in electric vehicle technology firm Miljøbil Grenland/Innovasjon
of Norway for US$1.93 million, which specialises in the development of innovative
solutions for electric vehicles, and plans to launch the electric Indica hatchback in
Europe next year. In September 2010, Tata Motors presented four CNG–Electric Hybrid
low-floored Starbuses to the Delhi Transport Corporation, to be used during
the Commonwealth games. These were the first environmentally friendly buses to be
used for public transportation in India.
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Tata Ace
Tata Ace was India's first mini truck
Tata Ace, India's first indigenously developed sub-one-ton mini-truck, was launched in
May 2005. The mini-truck was a huge success in India with auto-analysts claiming that
Ace had changed the dynamics of the light commercial vehicle (LCV) market in the
country by creating a new market segment termed the small commercial vehicle (SCV)
segment.
Ace rapidly emerged as the first choice for transporters and single truck owners for city
and rural transport. By October 2005, LCV sales of Tata Motors had grown by 36.6
percent to 28,537 units due to the rising demand for Ace. The Ace was built with a load
body produced by Auto line Industries. By 2005, Auto line was producing 300 load
bodies per day for Tata Motors.
Ace is still a top seller for TML with 500,000 units sold to date (June 2010). In 2011, Tata
Motors invensted Rs.1000 Crore in Dharwad Plant, Karnataka with the capacity of
90,000 units annually and launched 2 models of 0.5T capacity as Tata Ace Zip, Magic Iris.
Ace has also been exported to several Asian, European, South American and African
countries and all-electric models are sold through Polaris Industries' Global Electric
Motorcars division. In Sri Lanka it is sold through Diesel & Motor Engineering (DIMO)
PLC under the name of DIMO Batta.
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SWOT ANALYSIS
STRENGTH
One of the early market entrants and oldest car
manufacturer
Offers a wide range of cars to different set of customers
Provides special product features taking into consideration
the targeted segments
Invested efforts to go green in order to help the
environment
Zenvo automobile Has over 160,000 employees
Globally Present across continents and has excellent
visibility & marketing
Zenvo is present in Motorsports like Formula One, Rally,
Sports cars, Touring cars & sponsorship of events
Zenvo having a experienced quality
The strength of a zenvo is a it is a recognizable brand
Zenvo automobile are user oriented
Zenvo having a high level technology
SWOT ANALYSIS OF ZENVO AUTOMOBILE INDUSTRY
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WEAKNESS
Zenvo is Adversely affected by the global recession & Euro
crisis
Zenvo automobile Hasn’t completely tapped emerging
economies as compared to some other automobile giants
Often has long development time
Zenvo is recognized brand it has also a somewhat out of
date image
Fear of new technologies
In Denmark country Peoples are more prefer electrical
cars
OPPORTUNITY
Expanding automobile sector
Improving business scenario due to expansion of consumer
base
Capitalizing on the models exclusively designed for
different markets e.g. zenvo Ikon for Denmark.
User oriented product
Sustainability and environmental vehicles
Technology advancement
Benefits provide by governments
THREATS
Competition from major international players
Increasing usage of public transport and increased fuel
costs
Production problems in local plants due to labor and
similar issues
Too much government interference
Peoples are highly prefer bicycles
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SWOT ANALYSIS OF TATA MOTORS
STRENGTH
One of the most established company in automobile sector
Wide & extensive distribution and service network
Good market penetration in the taxi & rental segment
Expert service professionals available
Many associations like Jaguar Land Rover, Hispanso,
Macropolo etc which increases international presence
Dedicated engineering and R&D department
Tata automobile has More than 60,000 employees
Highly diversified product portfolio
Increase in the export levels
Tata automobile has Low cost and cheap labor
Rise in the working and middle class income
Increasing demand for European quality
Expert skills in producing small cars – good for
environment
SWOT ANALYSIS OF TATA AUTOMOBILE INDUSTRY
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Large pool of engineers
WEAKNESS
Low quality compared to others
Limited international presence
Sometimes faces alleged quality and durability issues
Not much customer engagement programs and activities
Low labour productivity
High interest rate and overhead level
Production cost are generally higher
Low investment in R&D area
Local demand is still towards low cost vehicles, due to low
income levels
OPPORTUNITY
Expanding automobile market and available space for
competitors
Increasing per capita income and purchasing capability of
potential customer base
Leveraging customer engagement experience to acquire
new customers
Leveraging mergers and acquisitions to acquire newer
technology
Augmenting the distribution and service network in various
countries
Growing population in the country
Focus from the government in improving the road
infrastructure
Rising living standards
Increase in income level
Better car technology is demanded
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Rising rural demand
The car is a status symbol
Women drivers have increased
THREATS
Increasing fuel costs
Competition from other big automobile giants
Competitive products offering same level features at a
lesser price
Product innovations and frugal engineering by competitors
Less skilled labor
Lack of technologies
Increase in the import tariff and technology cost
Increase the import of vehicles
Smaller players that do not fulfill international standards
Increased congestion in the urban areas
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OPPORTUNITIES FOR AUTOMAKERS
Although all major automakers are making electric vehicles, they must decide how to
invest across hybrids, plug-in hybrids, and battery electric vehicles for the future market.
For example, Ford’s Michigan Truck Plant was retooled with the help of ATVM loans to
build electric vehicles.
The retooling was part of a company-wide strategy to increase its portfolio of fuel-
efficient hybrids and EVs.
Automakers typically specialize in engine and transmission systems, while outsourcing
other components. However, the more electric-dependent a vehicle is, the more value
the battery holds.
MARKET OPPORTUNITY FOR ZENVO AUTOMOBILE COMPANY
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Major automakers are now building in-house expertise or partnering with specialized EV
and battery firms to differentiate their technology. The race is to build a better battery,
achieve economies of scale, and provide the customer with the best end value. Over
time, value may shift from batteries to the electronics and software of power and
thermal management systems.
These systems restrain the overall performance of the car, so automakers may move
into this space to increase efficiency and capture this value Opportunities for Battery
Makers.
The global market for electric vehicle batteries in 2009 was $1.3 billion. McKinsey &
Company projects that if annual sales of PEVs reach 6-8 million by 2020, the value of the
battery market will be $60 billion.
This potential opportunity has drawn leading battery makers as well as startups to
invest heavy research and development dollars into vehicle applications. Some have
begun to partner with automakers to gain knowledge of vehicle platforms. Incumbent
battery makers (especially foreign) have an advantage in this market, as startup costs
are high, competition is built on economies of scale, and there are currently only a
handful of customers.
However, the battery industry has also seen a plethora of startup companies that are
driven by innovative technology and venture capitalists eyeing the expanding electric
vehicle market.
As electric vehicles take off, the battery industry is set to evolve. Battery technology is
highly differentiated at the moment. At last, battery makers that compete well on cost,
safety, and performance will rise as leaders.
The price of batteries will also fall as technology becomes more standardized. Once this
happens, battery makers may want to expand into other systems of the electric vehicle
to gain more profit opportunities. For example, McKinsey & Company foresees that
battery companies may also be able to manufacture components for power and thermal
management systems.
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OPPORTUNITIES IN THE SUPPLY CHAIN
Even though electric vehicles and conventional vehicles share some of the same
component parts, there are over a dozen new systems used for EVs that are not well-
matched with conventional vehicles. Some of these new systems include new gear
boxes, electric power steering, and water pumps to cool the electric engine. Battery
packs, cell components, and basic materials for batteries will also require supply chains
to be refigured.
Mass deployment of EVs will require supply chains to be retooled, thereby opening up
opportunities for battery makers, cell component makers, and their suppliers while
moving back the role of other component suppliers. The opportunities for suppliers
depend upon which companies they are supplying. Serving automakers negotiate down
their costs along supply chains in order to provide the best end-value for the customer.
Thus, suppliers who work with startup OEMs and battery companies may be able to
earn better profit margins.
Foreign markets also present significant competition for U.S. suppliers. For example,
U.S. battery makers typically import battery cells and assemble them domestically.
Korea, Japan, and China currently supply about 95 percent of the world’s advanced
batteries and thus have long-standing relationships with raw materials suppliers or
directly own mineral mines themselves.
However, the U.S. federal government is supporting domestic battery makers through
ARRA grants – especially those affected by structural changes in the automotive industry
and the recent recession.
Federal, state, and local incentives are helping suppliers retool as automakers
increasingly focus on producing hybrids and EVs. For example, ARRA Advanced Energy
Manufacturing Tax Credits and state and local incentives helped automotive suppliers in
Michigan retool to make parts for the Chevy Volt battery pack.
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OPPORTUNITIES FOR UTILITIES/INFRASTRUCTURE PROVIDERS
As more and more EVs plug into the electric grid, utilities and infrastructure providers
must match the demand and supply of electricity while yielding positive profits. Because
utilities are often public-private entities, balancing profit and public service can be
challenging. One study found that if EVs accounted for 20 % of local cars sold, EVs would
consume up to 2% of total electricity demand.
If cars charge mostly at night, little or no new capacity will be needed. However, if new
generation capacity is needed, a question arises as to who will pay for the necessary
upgrades.
According to one study, potential sales of 1.8 million EVs in California will require up to
$5 billion in upgrades to transmission/generation infrastructure. While utilities may
diminish some of the cost through federal grants or tax credits, rates will likely go up.
This raises the lifetime cost of owning a EV, and if rates are satisfactorily high, EV
demand will go down. Utilities and regulators will need to agree on a pricing framework
that is not self-defeating, whether new generation capacity is needed or not.
OPPORTUNITIES FOR SOFTWARE DEVELOPERS AND SMART GRID
The development of the smart grid will go hand-in-hand with mass EV consumption. The
smart grid will allow utilities to manage vehicle charging on the grid and facilitate billing
during on and off peak hours. Utilities can also use smart grid software to turn vehicle
chargers on or off to shape the system load.
In vehicle to grid (V2G) applications, cars supply their electricity back into the grid to
supplement electricity supply during peak demand hours. In this case, bi-directional
chargers and proper software will be needed to control the charge flow.
Initial estimates of the entire V2G installation set the cost at $2,000.
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NRG Energy, a New Jersey-based energy company, launched the United States’ first
commercial-scale V2G demonstration project in late 2011. As results are gathered from
studies like this, the unique opportunities for smart grid and software developers will
become clearer.
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PROMOTE AUTO-SECTOR FOR GROWTH AND EMPLOYMENT
OPPORTUNITIES
Establish an international center for manufacturing affordable cars, two wheelers and
tractors Guarantee a stable progress towards open deal, with minimum risk to local
market and Indian economy to make it possible for constant transformation of Tata by
enabling innovative designs, research and development support the development of
automobiles driven by alternative energy source improving the local safety and
environmental values.
MARKET OPPORTUNITY FOR TATA AUTOMOBILE COMPANY
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GROWING DEMAND
Due to rise in incomes and developing middle class, the purchasing power of people has
increased. Young population is growing the demand for world class cars with the
improved infrastructure; commercial vehicles can right to use distant markets easily.
Hence, their demands have increased by several folds.
POLICY SUPPORT
The intend of the Indian government is to get recognized as a global auto-manufacturing
hub and many NATRIP centre’s have been introduced to push the cause. Funds are
allotted by Gol for Research and Development(R & D) with an aim to manufacture low
cost vehicles. A wide range of policy support has been given to foreign investors in the
form of delicensing 40% reduction in excise duty and decrease in import duties on CKD-
50% and CBU-110%.
INNOVATION OPPORTUNITIES
The Tata Nano & Tata Pixel has opened a new segment for innovating low cost cars
strong export possibility in ultra-low priced car segment. CNG(compressed natural
gas)market value was more than $330 million in the FY 11.CNG distribution network is
expected to expand from 30 cities(2009) to 250 cities in 2018.
ROAD AHEAD
Factors like supportive government policies, optimal business environment and
convenience of inexpensive proficient workforce have transformed India into a global
automobile hub. Foreign manufacturers can consider investing in either or both,
automobile sector and auto components sector in India. Many top brands have already
capitalized on the opportunities and many more are planning to invest today. India is
one of the most rewarding marketing platforms for the best vehicles that the world has
to offer.
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In India, exports and imports are regulated by the Foreign Trade (Development and
Regulation) Act, 1992, which replaced the Imports and Exports (Control) Act, 1947, and
gave the Government of India enormous powers to control it. The salient features of the
Act are as follows:-
It has empowered the Central Government to make provisions for development and
regulation of foreign trade by facilitating imports into, and augmenting exports from
India and for all matters connected therewith or incidental thereto.
The Central Government can prohibit, restrict and regulate exports and imports, in all or
specified cases as well as subject them to exemptions.
It authorizes the Central Government to formulate and announce an Export and Import
(EXIM) Policy and also amend the same from time to time, by notification in the Official
Gazette.
It provides for the appointment of a Director General of Foreign Trade by the Central
Government for the purpose of the Act. He shall advise Central Government in
formulating export and import policy and implementing the policy.
Under the Act, every importer and exporter must obtain a 'Importer Exporter Code
Number' (IEC) from Director General of Foreign Trade or from the officer so authorized.
POLICIES AND NORMS OF INDIA FOR IMPORT OR EXPORT TO THE DENMARK
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IMPORT POLICY OF INDIA
Duty Rates: Duty rates in India can be as a percentage of value or specific (rupees per
unit). Duty rates vary from 0% to 150%, with an average rate of 11.9%. Some goods are
not subject to duty (e.g. Laptops and other electronic products).
Sales Tax: There is no sales tax in India for imported goods.
Minimum Thresholds: There is no minimum threshold in India, i.e. all imports regardless
of their value are subject to duty and taxes.
EXPORT POLICY IN INDIA
Exports are the major focus of India's trade policy and a thrust area is exports involving
higher value additions. Most items can be freely exported from India. A few items are
subject to export control in order to avoid shortages in the domestic market, to
conserve national resources and to protect the environment.
Export profits are exempt from income tax. Higher royalty payments of 8% (net of taxes)
are permitted on export sales as compared to 5% on domestic sales. Export
commissions up to 10% are also permissible.
Inputs required to be imported for export production are exempted from the basic
customs duty. Export Oriented Units (EOUs) and Export Processing Zones (EPZs) enjoy
special incentives such as duty free import of capital goods and raw materials for the
purpose of export production.
A Brand Equity Fund has been set up to popularize high quality India brands in the world
market. The corpus of the fund of Rs 5 billion (US $156 million) will receive equal
contributions from the government and industry.
Other officer so authorized can suspend or cancel a license issued for export or import
of goods in accordance with the Act. But he does it after giving the license holder a
reasonable opportunity of being heard.
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EXECUTIVE SUMMARY
A TATA motor is the cheapest car providers in the world. It is the largest automobile
company in India. What makes Tata cars so inexpensive? Basically, by making things
smaller, lighter, do away with external parts and change the materials wherever
possible without compromising the safety and environmental conformity. It is said that
Tata motors provide better millage vehicles than competitors and same gas emission as
a scooter.
Regarding the distribution of the car, we have called it "open distribution" innovation
because it mobilizes large numbers of third parties to reach remote rural consumers,
tailor the products and services to more effectively serve their needs, and add value to
the core product or service through subsidiary services.
Company Locations and Facilities
At present the company offices are located at main area of Copenhagen (Capital of
Denmark). However, as time progresses the intention is to move into more accessible
and attractive offices in a prime area.
BUSINESS PLAN
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Objectives
Continuously provide quality service/number of automotive product on time and on
budget.
Develop actively satisfied customers all of the time.
Establish a market presence that assures short-term and long-term profitability, growth
and success.
Contribute positively to communities and environment.
Services
It is an automobile company that intends to deliver vehicles to customers. It intends to
guide customers in selecting a Tata motor model based on pre-defined customer
criteria. This analysis will be based on user profiles, set by the consumers, which include
preferences such as:
Budget
Provide best service
Quality of product requires.
Time to time deliver product.
innovation
Tata automobile will hence be able to select areas of interest based on their preferences
and subsequently.
Keys to Success
The keys to success will definitely be effective market segmentation through
identification of several niche markets and implementation strategies. Along these lines
the company intends to implement advertising and personal selling strategies to the
target markets.
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Our personal selling marketing strategies will rotate around keeping in touch with loyal
customers and intermediateries for major customers, and advertising for more
individual customers. Hence our key success factors will include the following:
Excellence in fulfilling the promise: We intend to offer completely enjoyable,
comfortable and informative Tata car that will ensure that Tata motor are thoroughly
satisfied and grateful when purchasing Tata product.
Timely response to customers' requests: We cannot afford to delay our clients for
whatever reason, as this will have a negative bearing on our image and reputation,
including future business. Hence we need to be continually communicating with the
customers to ensure that what they expect and what is their requirements towards the
car.
Solid and successful strategic alliances: Considering the nature of our services and our
relative youth on the market, we realize the importance of establishing and maintaining
fruitful strategic alliances with various stakeholders or distributors of Denmark country
and tata motor alliance with any Denmark atomative company, amongst others, so as
be assured of a constant flow of customers, fulfilling their needs at every opportunity.
Key benefits to the customers
Affordable
Fuel efficient
Safe
Environment friendly
Reliability compared to other competitors
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The Revenue Model The way Tata motors raise funds include several aspects. Those aspects
are detailed in the as follows.
1. SELLING THE CARS TO CUSTOMERS:-This activity is the first revenue flow of the project.
The first targeted market is the Indian one. There are also project to extend the market
of Tata motors to Malaysia, the rest of Asia, Europe, Africa and South America.
2. BANK SERVICES:-Tata motors have sign contract with Indian Banks in order to allow
low income people to get loans at low interests. Therefore, they could afford
booking for their Tata cars that contract, Tata motors and the bank all take advantages.
3. MAINTENANCE SERVICES:-The Tata motors project include a maintenance department. In
fact, the customers will be offered maintenance services at a fix price per month.
Those services will be extremely competitive and cheap as the car itself.
4. ADVERTISING:-Tata motors have been making a lot of advertisement in a lot of
countries. As Tata motors have become a famous trade, some channel will allow Tata
motors advertisement to be displayed, increasing the channel audience. In addition, Tata
Motors will take advantage of sweepstakes organized in order to promote the car.
Those events always bring to the company both publicity and money.
5. MARCHANDISING:-There are a lot of product that have been manufactured in order
to promote the Tata motors, namely hats and cups. The company will therefore
sell those products and make money benefits from them.
6. MAKING FRANCHISES:-The development of Tata motors started many years ago and
have lead to the production of an extremely efficient cars as far as pollution and gas
consumption are concerned. The technology used could be sold to other companies as
Licenses, leading to funds raise.
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COMPETITORS
There are presently few competitors offering services similar to ours. However
considering the pace of change and current growth rate of the automotive industry
during many companies into the sector, this may be short-lived. Hence there will be a
need to not only firmly establish ourselves on the market, but also strongly differentiate
ourselves from these other businesses. However on a broader scale our competition
comes in several forms:
AT NATIONAL LEVEL
The closest competitor of the Tata motors" is Maruti which is double of its price. A small
car from Maruti Suzuki, which is priced higher than Tata motors. FOR E.G., Despite
six percent shorter, Tata nano has about twenty one percent more interior space than
the Maruti 800 due to its larger height and width. Suzuki is aware of the gap and is
working with difficulty to improve its current care listings. It will focus on achieving
the practicality and efficiency of Tata Nano without compromising on safety and
quality.
However, Maruti Suzuki is not in a position to reduce the price of Maruti 800 just for
the sake of competing with Tata Nano. Bajaj auto is also developing a low cost car
(code-named ULC) tagged at 2,000 Euro together with Renault-Nissan to rival Tata
Nano. This ultra-low cost car is expected to be launched in India in 2012.
The companies claim that the new ULC car will consume less fuel than any other four-
wheeler on the urban roads. Thus the car is expected to take on the Tata Nano,
the cheapest car being produced and marketed by Tata Motors in the country.
AT INTERNATIONAL LEVEL
The Toyota IQ could be a competitor of tata motors at international level because it
is the world’s smallest four seater car provider e.g...TATA NANO. Though the car is a small
car since it gives the feel of a large car since it has the power of a Toyota. But the
Nano’s price and design is much better than the Toyota IQ.
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Another car that could be a competitor will be Mitsubishi I. But there again people may
opt for the nano because of the mileage it provides if people are looking for a fuel
efficient car in that category. The Toyota super mini could also compete with this car.
China's Cherry QQ could also be considered as a strong competitor who is expected
to gain foothold in the Indian market in 2008. The Cherry is expected to retail about
2,600 Euro. But when compared to any of these above mentioned international models
the Tata Nano Europe model stands out.
Hyundai is another company taking Tata Nano seriously. Hyundai plans to launch a new
model in the market which would be priced cheaper than their current cheapest model-
Santro. This new car would not be released at least until 2011, and is expected to be
manufactured in Hyundai's new factory.
Honda and Toyota are leading the way on so called cleaner gasoline-electric hybrids,
and some environmentalists argue getting prices down on these technologies is where
efforts should be concentrated. Inexpensive and eco-friendly electric-cars like Tara Tiny,
Oreva Super (both reportedly even cheaper than Tata Nano) and REVA pose even more
significant danger to Nano.
The design, mileage, space efficiency, maneuverability of the Tata nano Europe is better
when compared to the others. Also in terms of being less pollute the tata nano
Europe is a very environment friendly car. May be it could be found a bit lacking in
power and the top speed. But tata nano Europe is set to take entire europe and the rest
of the world by storm and is sure to give its competitors a run for their money.
STRATEGIES
Establish reputation as a differentiated, specialty provider of cars. This will be
accomplished through a different marketing communications program.
Provide equaled service to the customers, local and international, in order to gain
repeat business and build trust. This will include providing superior service in all phases
of the transaction, including timely delivery or customized products.
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Promotion Strategy
Direct Marketing: In the case of telemarketing it will involve our targeting potential
customers of our services and informing them of our existence and destinations.
Events: The organization aims to promote itself through attending trade shows and
expositions. Not only will these increase awareness of our services and business name,
but also enable us to interact with potential customers who may decide to utilize our
products and service.
Internet Marketing: The increasing growth of the Internet as an information source
provides an opportunity for ourselves that we may exploit. This is particularly so in view
of the increasing distribution of information over the World Wide Web, as individuals
and groups look at obtaining the best deal possible.
MARKETING PLAN
The Marketing Strategy
This section discusses the different aspects of the marketing strategy adapted by
TATA motors.
The People’s car
The Buzz
Across the borders
Tata Motor Showrooms
Bank Financing
On The web
The One Form Booking
“A promise is a promise”
Warranty
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FINANCIAL PLAN
Underlying Assumptions
The automobile industry will have an annual revenue growth rate of 10% per year.
The Owner will acquire Rs. 40,00,000 of debt funds to develop the business.
The loan will have a 10 year term with a 9% interest rate.
Sensitivity Analysis
In the event of an economic downturn, the business should not have a major decline
in its revenues. The automobile intends to produce in demand cars that will be
readily purchased by customers. As such, the Company will be able to remain
profitable and cash flow positive in any economic climate.
Sales Forecasts:
The Tata automobile expects a strong rate of growth at the start of productions.
Below are the expected financials over the next three years:
Performa Profit and Loss (yearly)
Year 1 2 3
Sales 65,55,290 71,14,265 77,78,550
Operating Costs 35,94,920 39,01,465 42,65,750
EBITD 29,60,370 32,12,800 35,12,800
Taxes, Interest, and Depreciation 11,84,148 12,85,120 14,05,120
Net Profit 17,76,222 19,27,680 21,07,680
At this time, Tata automobile will require Rs.40,00,000 of debt funds.
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FEEDBACK AND CONTROL
We intend to make sure that each employee understands the goals of the firm, is
customer focused, proud of their work and work as a team. This will encourage
employees to become entrepreneurial and customer responsible, in addition to unifying
staff in customer focus and values.
Important notices and developments will be continuously communicated to employees
so as to keep them abreast of developments and promoting a sense of belonging and
oneness in the organization.
We will encourage our employees to put forward any suggestions they might have
regarding the improvement of any of the company's functions - an open door
philosophy. Such a culture will enhance innovativeness and creativity in turn leading to
job satisfaction and enrichment.
We undertake to continuously formalize and measure cross-functional working
communication so as to ensure that the various departments work harmoniously
towards attainment of company objectives.
CONCLUSION
A Tata motor achieves what most people deemed impossible through originality and
initiative. It is a no added extras car that serves the needs of the general public and
India's unacceptable road conditions and dishonorable traffic. In this sense, the
production and launch of Tata motors can be called a revolution - not only to the consumers
but also to industry players.
Other players are contemplating on their own versions of low cost alternatives as a result
of the overwhelming response from the Indian public and all over the world. Moreover,
their uncertainty is met with a surprise upon seeing the model in action.
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The next step forward for Tata is to address the possible concerns with regard to
ownership in order for customers to grasp the value proposition that Tata is trying to
broadcast.
This includes dispelling all perceptions of shortcomings normally associated with a low-
cost car through vigorous testing on real roads using real users. The basic rule of
customer service still applies.
Tata motors should meet the consumer's expectations by providing a reliable and
modestly safe vehicle to drive. The car, with its huge recognition gained even before its
launch, is expected to fulfill the dreams of common people.
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FINDINGS:
As per the above report it has been found that for Indian automobile there is
a very good opportunity to do the business in Denmark. The opportunities to
establish automobile industry in Denmark are:
o Opportunities for automakers
o Opportunities in the supply chain
o Opportunities for software developers and smart grid
o Opportunities for utilities/infrastructure providers
Denmark country provides more technological advantage for industry than
the india.
Denmark country having a better skilled engineers and labours than the
Indian that’s why the india has a better opportunities to established their
business in Denmark for more profit.
Government support in Denmark is more than India so the Indian company
can easily do the business in Denmark.
Denmark provides high investment area for earning high profit.
FINDINGS AND SUGGESTION
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SUGGESTION:
Hence, it can be suggested that doing a automobile business in Denmark will
be very beneficial as there are more opportunities in Denmark to expand the
business as well as earn profits in long term.
Denmark’s policies and market opportunities are suitable to start up a
business in Denmark. Of course there are certain problems too. But
opportunities are more as compared to problems.
If both the company of India and Denmark will merge together than it will
create competitive advantage to them.
Doing a business in Denmark is simple and valuable.
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After analyzing the above report, it can be concluded that Tata automobile
can easily develop its business in Denmark because the Denmark country
provides the more opportunity with a high development technology.
If the Tata automobile will start there business in Denmark than it should be
helps to remove out or decrease the weakness of Tata automobile.
As per the report we conclude that through the merging with Denmark,
Indian company can easily convert their weakness in to the strength.
Denmark country mainly focuses on electronic vehicles while the Indian
country is mostly focused on fuel.
Denmark country having technological advantage to run out their business
with providing innovative vehicles.
The Tata automobile of India having a opportunities to do the business are
like,
Growing demand
Policy support
Innovative opportunity
Providing road ahead
Tata automobile provide customized product to customers with a low cost.
As per the report finally we conclude that the Denmark country is better to
do the business than india.
CONCLUSION
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